front 1 Business ethics | back 1 The application of moral principles to business decisions and actions, ensuring they are fair, honest, and socially responsible. |
front 2 Business Objectives | back 2 Specific goals that a business aims to achieve, guiding its planning and decision-making. |
front 3 Business Plan | back 3 A formal document outlining a business’s objectives, strategies, financial forecasts, and how it intends to achieve its goals. |
front 4 Co-operative | back 4 A business owned and operated by a group of individuals for their mutual benefit, where profits and decision-making are shared among members. |
front 5 Corporate Social Responsibility | back 5 A business’s commitment to managing the social, environmental, and economic effects of its operations responsibly and ethically. |
front 6 Entrepreneur | back 6 An individual who invests resources and takes on the risk of starting and running a new business venture. |
front 7 External Growth | back 7 Expansion achieved by merging with or acquiring another business, rather than through internal development. |
front 8 External Stakeholders | back 8 Individuals or groups outside the business who are affected by its activities, such as customers, suppliers, and the local community. |
front 9 Franchise | back 9 A legal agreement allowing one business to use the name, logo, and products of another established business in exchange for a fee. |
front 10 Incorporated Business | back 10 A business that has a separate legal identity from its owners, offering limited liability protection. |
front 11 Internal Growth | back 11 Expansion of a business through increasing sales and output, rather than through mergers or takeovers. |
front 12 Internal Stakeholders | back 12 Individuals or groups within the business who are affected by its decisions, such as employees, managers, and owners. |
front 13 Joint Venture | back 13 A business arrangement where two or more companies agree to work together on a project, sharing capital, risks, and profits. |
front 14 Limited Liability | back 14 A legal structure where the owners are only responsible for business debts up to the amount they have invested. |
front 15 Mission Statement | back 15 A brief statement that outlines a business’s core purpose, values, and long-term vision. |
front 16 Needs | back 16 Basic goods or services essential for human survival, such as food, water, and shelter. |
front 17 Opportunity Cost | back 17 The benefit that is lost when choosing one alternative over the next best option. |
front 18 Partnership | back 18 A business owned by two or more people who share responsibility, decision-making, profits, and financial risk. |
front 19 Primary Sector | back 19 The part of the economy that extracts natural resources, such as farming, fishing, and mining. |
front 20 Private Limited Company | back 20 An incorporated business where shares are sold privately, often to friends or family, and owners have limited liability. |
front 21 Private Sector | back 21 The part of the economy owned and controlled by individuals or private businesses, rather than the government. |
front 22 Public Corporation | back 22 A government-owned organisation that provides goods or services to the public, usually in the public interest. |
front 23 Public Limited Company | back 23 An incorporated business that can sell shares to the general public on a stock exchange. Owners have limited liability. |
front 24 Public Sector | back 24 The part of the economy owned and operated by the government, providing services such as education and healthcare. |
front 25 Purpose of Business Activity | back 25 To produce goods and services that satisfy customer wants and needs, using scarce resources effectively. |
front 26 Quaternary Sector | back 26 The sector of the economy focused on knowledge-based services, such as IT, research, and consultancy. |
front 27 Scarcity | back 27 The basic economic problem of having limited resources to meet unlimited human wants. |
front 28 Secondary Sector | back 28 The sector of the economy that manufactures finished goods from raw materials. |
front 29 Social Enterprise | back 29 A business with social or environmental objectives that reinvests profits to achieve its mission rather than maximise returns to owners. |
front 30 Sole Trader | back 30 A business owned and controlled by one individual who bears full responsibility for decisions, capital, and risk. |
front 31 Specialisation | back 31 The concentration of individuals, firms, or countries on producing tasks or goods they are best at. |
front 32 Tertiary Sector | back 32 The part of the economy that provides services to individuals and businesses, such as retail, finance, and education. |
front 33 Triple Bottom Line | back 33 A business approach that considers social, environmental, and financial performance equally in measuring success. |
front 34 Unincorporated Business | back 34 A business where there is no legal distinction between the owner and the business, often resulting in unlimited liability. |
front 35 Unlimited Liability | back 35 A situation where business owners are personally responsible for all debts of the business. |
front 36 Value Added | back 36 The difference between the selling price of a product and the cost of the materials used to produce it. |
front 37 Wants | back 37 Non-essential goods or services that people desire to improve their quality of life. |
front 38 Intrapreneur | back 38 An employee who takes responsibility for innovating within a business, using company resources to develop new ideas. |
front 39 Multinational Business | back 39 A business that operates in more than one country, often with a centralised headquarters managing global activities. |
front 40 Adding Value | back 40 The increase in worth of a product by enhancing it or processing it, calculated as selling price minus input costs. |
front 41 Factors of production | back 41 The resources used in the production process: land, labour, capital, and enterprise. |
front 42 Dynamic Business Environment | back 42 A constantly changing external environment that affects how businesses operate, such as changes in technology, economy, or customer needs. |
front 43 Business Risk | back 43 The chance that a business may experience lower profits or fail due to internal or external uncertainties. |
front 44 Merger | back 44 When two businesses agree to join together to form one combined business entity, sharing ownership, operations, and control. |
front 45 Takeover | back 45 When one business buys a controlling interest (more than 50%) in another business, giving it control over the acquired company. |
front 46 Conglomerate Diversification | back 46 A type of external growth where a business merges with or takes over another business in a completely unrelated industry. |
front 47 Horizontal Integration | back 47 When a business merges with or takes over another business in the same industry and at the same stage of production. |
front 48 Vertical Integration - Forward | back 48 When a business takes over or merges with another business at a later stage in the supply chain, such as a manufacturer buying a retailer. |
front 49 Vertigal Integration - Backward | back 49 When a business takes over or merges with a supplier at an earlier stage in the supply chain, such as a manufacturer buying a raw materials supplier. |
front 50 Strategic Alliance | back 50 A formal agreement between two or more businesses to work together on a project or achieve shared objectives without forming a new legal entity. |
front 51 SMART Objectives | back 51 Business goals that are Specific, Measurable, Achievable, Realistic, and Time-bound, used to improve planning and performance. |
front 52 Friendly Merger | back 52 A merger where both companies agree to join together, with the consent and cooperation of both boards of directors. |
front 53 Hostile Takeover | back 53 A takeover where the acquiring company attempts to gain control of another company without the consent of its management. |
front 54 Business Activity | back 54 The process of producing goods or providing services to satisfy customer needs and wants. |
front 55 Economic Structure | back 55 The way an economy is organized based on the relative importance of the primary, secondary, and tertiary sectors. |
front 56 Corporate Social Responsibility (CSR) | back 56 A business’s commitment to act ethically and contribute to economic development while improving the quality of life for employees, the community, and society at large. |
front 57 Triple Bottom Line | back 57 A framework that assesses business performance based on three criteria: profit, people (social responsibility), and planet (environmental responsibility). |
front 58 Deindustrialisation | back 58 A decline in the importance of the manufacturing sector in an economy, often accompanied by growth in the tertiary sector. |
front 59 Public–private partnership (PPP) | back 59 A collaborative project between a government and a private sector company, typically to finance, build, or operate infrastructure or public services. |
front 60 Privatisation | back 60 The transfer of ownership of a business or industry from the public sector to private individuals or businesses. |
front 61 Revenue | back 61 The total income a business earns from selling goods or services before any costs or expenses are deducted. |
front 62 Profit | back 62 The financial gain a business makes when total revenue exceeds total costs. |
front 63 Value creation | back 63 The process by which a business increases the worth of a product or service, usually by improving quality or customer experience, beyond its cost. |
front 64 Mission Statement | back 64 A brief statement that defines a business's core purpose and focus, explaining why it exists and what it aims to achieve. |
front 65 Vision Statement | back 65 A future-oriented declaration of the business’s long-term goals and aspirations. |
front 66 Tactical Objectives | back 66 Short- to medium-term goals set by departments or teams within a business that support the broader strategic objectives. |